The flag and the mansion of the ruler in the old San Juan, Puerto Rico. (Photo by Ricardo ArDuengo / AFP (photo by Ricardo ArDuengo / AFP via Getty Images)
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For decades Puerto Rico He was one of the world’s leading pharmaceutical hubs in the world. A combination of specialized workforce, legal protection by the US and, in particular, especially a special supply of the US Tax Code (Section 936) allowed US companies to operate there to avoid federal taxes on the profits they won on the island. This attracted large companies, which fed jobs, innovation and prosperity. At its peak, Puerto Rico produced a significant share of America’s most important drugs. Then Washington, in a short -sighted adjustment, gradually section 936. The result? The factories were closed, jobs disappeared and Puerto Rico’s economy suffered. In the meantime, the US has become dangerously dependent on supply chains abroad, many focused on China.
It’s time to reverse this mistake. Congress should restore the kind of incentives that once made Puerto Rico a pharmaceutical force. In this way, we can at the same time enhance US financial security, create high payment jobs and give Puerto Rico the tools to rebuild his outward economy.
This is not about the subsidies or micro -management of the government. This is the use of a smart, pre-development tax policy for liberalization of private investment. Carrots, not sticks. For a long time, US policy has supported invoices, orders and heavy arrangements to push US companies back home. This approach rarely works. Companies abandon high costs and uncertainty. But when you reduce obstacles and let entrepreneurs do what they do best – they invest, they hire and innovate – the results talk about themselves.
The advantages of Puerto Rico are clear. The island offers a bilingual and educated workforce, proximity to the mainland markets and the stability of the functioning of US law law. The restoration of tax incentives will motivate pharmaceutical companies to build and expand plants on the island. Each new factory would mean hundreds of high -quality jobs, each of which supports many others in services, logistics and construction. The Ripple phenomenon would be a transformative.
Equally important, the rejuvenation of Puerto Rico’s pharmaceutical sector will enhance our strategic resilience. The pandemic exposed our dangerous dependence on foreign suppliers for critical medicines and medical species. Washington has ever spoken endlessly about the production of “Reshoring”, but progress was slow. Providing incentives for Puerto Rico would be the fastest and cost -effective way to bring the construction back to our border. It would ensure quality, protect supply chains and reduce our vulnerability to geopolitical disorders.
The financial benefits for Puerto Rico will exceed immediate jobs. A renewed pharmaceutical base would promote infrastructure investments – everything from reliable power in modern ports. It would extend the island’s tax base, allowing the best schools, health care and public services. It could also prevent the New Puerto Ricz from leaving the mainland, offering them real opportunities at home.
Some critics will say that this is just “corporate prosperity”. Nonsense. The tax policy in favor of development is not about choosing winners and losers. It is about creating conditions in which everyone wins. When companies are investing, employees earn more, local communities thrive and grow government revenue. Alternative companies with invoices or are based on foreign imports – they are, in the long run, much more expensive.
Puerto Rico can once again be a world leader in pharmaceutical production. Washington must act quickly.
The lesson is simple: carrots work. The sticks don’t. Let us restore the policies that made Puerto Rico a glittering success story – for the island, for patients in America and for the economic security of our nation.
